Plus new consumer ads
In an effort to reduce its exposure to potential fraud and litigation abuse, Citizens Property Insurance Corporation this month began its new program to increase the number of home inspections on new and renewal policies. The state’s taxpayer-backed insurer of last resort is moving forward with expanded inspections to improve underwriting results and support its exposure reduction strategy. For the last five years, Citizens completed inspections for about 1% of its policies on an annual basis. The carrier will be spending up to $43 million over the next four years to boost the number of inspections from the 5,200 done in 2020 to more than 350,000 by 2025.
The no-cost inspections to policyholders will be performed by third-party inspection services. Agents will be notified and will be asked to verify the policyholder’s contact information. If property owners refuse to allow inspectors to have access to the property, the policy may be canceled or non-renewed, Citizens said in a bulletin posted this month.
Meanwhile, the solicitations for a “free roof” by roofing companies continue. We were sent this image at right from an Instagram ad, with the caption asking “Who else wants a new roof paid by the insurance?” Our answer: “Not us!” for that free roof replacement, according to the Insurance Commissioner and other state leaders in public testimony, is driving higher homeowners insurance premiums! Here is another Facebook advertisement shared with us from a reader: “No Roof Left Behind” campaign solicitation pitch.
Florida’s Insurance Consumer Advocate, Tasha Carter, keeps up with the solicitations in the marketplace, with a keen eye and focus on educating homeowners and other insurance consumers. She’s out with new materials to consumers in email and on the Department of Financial Services website on the types of fraud that occur and ways homeowners may unintentionally become part of a fraud scheme. The graphic below goes to the heart of the message.
Source: Florida Department of Financial Services, Office of the Insurance Consumer Advocate
We commend Insurance Consumer Advocate Carter for her team’s ongoing education campaign for Florida’s consumers. As the old expression goes, “Forewarned is forearmed!”
LMA Newsletter of 1-18-22
